Prime retail rents improve in 1Q2022 amid consumer rebound
Prime retail rents in suburban along with Orchard Road sites moved up by 0.7% and also 0.4% specifically in 1Q2022, according to a study by Colliers. This is an upgrading from 4Q2021 which saw prime country rentals up by 0.5% q-o-q while Orchard Road retail rentals somewhat grown by 0.1% q-o-q.
Looking forward, Colliers projects a much more supple retail forecast and also dweller sales on the back of boosting consumer step and also the lifting of traveling curbs as well as safer management actions. “This augurs well for retail operators, most especially those nestled in the Downtown Core as well as Orchard,” states Koh.
He predicts sellers will be much more favorable concerning their growth programs, which would add further support to a stronger leasing need. Lesser openings rates in the middle of limited new supply ought to also sustain a steady comeback of retail leas from 2H2022. But persistent inflationary pressures and manpower lacks might mold improvement.
“With step recovering highly in the Orchard Road shopping belt as well as the CBD, along with consumer traffic in the suburban areas staying tough, this definitely shows that the bricks-and-mortar company is still relevant, even as on-line buying gets traction,” mentions Dickson Koh, associate director of study at Colliers Singapore.